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Survey Says: Entrepreneurs Are Loners, First-Borns and Don't Have A Business Degree

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I came across an interesting “mental candy” article recently from Inc. magazine which describes a survey conducted by Intuit.  The survey represented about 1,300 small business owners.  In this case, a small business was defined as having 20 or fewer employees.

Here are some of the facts that I found fun and somewhat interesting:

 

  1. 43 percent of the respondents admitted they were “loners” as kids.

I’m not that surprised that such a large percentage of entrepreneurs would label themselves as “loners”.  Most of the entrepreneurs I know would likely fall into this camp.  What I found a wee bit interesting was the phrasing of the sentence.  43% of us “admitted” that we were loners (with the implication being that we’re admitting some fault.  Personally, I think being a loner or an introvert is simply an attribute and neither good nor bad.  

  1. 43 percent are the oldest in their family.

I think the fact that this number matches the number in point 1 is simply a co-incidence (though it would be interesting to see how much overlap there was between the two – i.e. are 90% of the loners the first-borns?).  

  1. 77 percent do not have a business degree.

Up until recently (June of last year), I would have fallen into this camp too.  I’m a bit surprised by just how many business owners don’t have a business degree.  But, I guess this might be true in other areas as well.  For example, how many software developers have computer science (or related) degrees?

And, here’s a bonus item:  85 percent of small business owners are sole proprietors (a legal designation that means the owner is the sole owner and directly liable for the business).  I find this particularly interesting.  This means there are millions of people out there that are by choice or by circumstance are exclusive owners of their companies.  It would be interesting to know what the break-down was by industry sector (but the raw data doesn’t seem to have been made available).

Here’s the full article from Inc.:  Not Only The Loners Become Entrepreneurs

 
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Posted by Dharmesh Shah on Wed, Jan 24, 2007 @ 06:55 PM

COMMENTS

What a garbage article. Where's the control group? Without a control group, this tells us nothing at all. 43% admit to being loners? Sure, why not. Lots of people feel lonely during high school, is this something exceptional about entrepreneurs? It's impossible to tell. 43% were the eldest in the family? Taking the canonical family with 2.4 children, you would expect a 41.7% chance of a random child being the eldest. That looks to me like birth order has no effect on entrepreneurship. 77% don't have business degrees? That means 23% do which looks like a pretty big number to me. How many college graduates are business majors? I bet it isn't 23%. 85% of business owners are sole proprieters? Sounds like a pretty obvious extension of the long tail principle to me. In short, this is a piece of utter glurge and you should be ashamed for having posted it.

posted on Wednesday, January 24, 2007 at 8:04 PM by Shalmanese


All excellent points. Unfortunately, I didn't conduct the survey.

However, I agree with you, the survey wasn't scientified at all (or if it was, it certainly didn't come out that way in the article).

posted on Wednesday, January 24, 2007 at 8:08 PM by Dharmesh Shah


Being a loner has absolutly nothing in common with feeling lonely.

posted on Wednesday, January 24, 2007 at 8:59 PM by Bob


Shalmanese, you totally beat me to it. I agree that the article is totally stupid.

posted on Wednesday, January 24, 2007 at 9:12 PM by karcass


Good article, but a sole proprietorship doesn't mean that their businesses have no employees, it simply means that the owner and the business itself is one entity, rather than the two being separate, like a corporation. A sole proprietor is free to hire as many people as he wants, he just cannot issue shares in his business like a corporation. Most small businesses are sole proprietorships mainly because you don't need to file paperwork with the state to start one, and you are only subject to normal income taxes on the profits of the business, and not taxes on profits before they are passed to shareholders as dividends.

posted on Thursday, January 25, 2007 at 1:40 AM by Scott


Well I'm an only child, still a loner, and I left school at 16, so the statistics are looking up for me.

posted on Thursday, January 25, 2007 at 3:00 AM by Peter Cooper


I have to add another point about Sole Proprietorship. The mistake about this term in the article is painful. I agree with an above poster who distinguishes this form of setting up a business from 'limited companies'. However, there's an additional point that makes a sole proprietorship what it is: there is a sole proprietor, or, there is only one owner (as opposed to a partnership, and some other forms of business, such as a practice).

posted on Thursday, January 25, 2007 at 4:03 AM by Zaan


Apologies for my ignorance on the sole proprietorship label. This has been fixed in the original article (and hopefully, also in my brain).

posted on Thursday, January 25, 2007 at 10:57 AM by Dharmesh Shah


I ran the GSS data (http://webapp.icpsr.umich.edu/GSS/) and I get there being a 45% chance of a random person being a first child from the SIBLINGS dataset.

posted on Saturday, January 27, 2007 at 5:35 PM by Shalmanese


I ran the GSS data (http://webapp.icpsr.umich.edu/GSS/) and I get there being a 45% chance of a random person being a first child from the SIBLINGS dataset.

posted on Tuesday, August 04, 2009 at 3:30 AM by ed hardy store


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